19.10.2015 - Volatility in the beginning of the week will be low
American stock indexes showed growth at the end of the trading week, despite the weak data on industrial production in the country, which fell by 0.2% in September, in line with expectations of experts. The main reasons for the deterioration of the indicators remain strong dollar and weaker demand in Europe and China. At the same time it is worth noting the growth of the index of consumer confidence from the University of Michigan in October to 92.1 against 88.8 expected. Today, the activity will be constrained by the expectation of tomorrow's speech by the Fed chairwoman Janet Yellen during which we will probably hear about the intentions of raising interest rates of the regulator till the end of the year, which is negative for the stock markets.
Major European stock indexes show different dynamics in the absence of vital statistics in Europe. It is worth noting that the growth in the markets is constrained by negative statistics from China. Thus, economic growth continues to slow together with the country's industrial production. Tomorrow, influence on course of trading will have a balance of payments statistics from the euro area and the speech of the Bank of England governor. We expect that growth on the region's markets will continue in the near future due to the support of the program of quantitative easing, which may be enhanced in the near future.
Markets in the Asia-Pacific region ended the trading session around the previous close levels against the publication of statistics in China. Thus, the growth in the world's second-largest economy slowed in the third quarter to its lowest level since 2009 and was 6.9%, which was 0.1% better than analysts' forecasts, but worse than the previous figure of 7.0%. At the same time, industrial production growth slowed to 5.7%, against the expected reduction to 6.0%. The head of the Bank of Japan Haruhiko Kuroda earlier announced an intention to maintain loose monetary policy until achieving the inflation target of 2.0% in the country that will support the growth on the Japanese market. Tomorrow we should pay attention to the publication of the minutes of the previous meeting of the Reserve Bank of Australia, which according to our forecasts will be positive for the Australian index. Our medium-term outlook for the market in the region remains positive.